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State Farm auto insurance rental reimbursement coverage: what you should know

If an accident leaves you without a car, you may need to rent one. State Farm auto insurance rental reimbursement coverage has your back

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Dealing with the aftermath of a car accident can be overwhelming. This is especially true when you have to rent a car while your vehicle is being repaired or replaced. State Farm auto insurance rental reimbursement coverage is designed to help recover the cost of a temporary vehicle. Before you decide on this type of coverage, there are a few things you should know.

Rental car reimbursement basics

state farm auto insurance rental reimbursement coverage can be a vital addition to any car insurance policyRental reimbursement is intended to pay for a rental car when your car is being repaired or replaced after a covered car accident. Typically, this type of policy has a daily allowance for car rental. The amount that you are entitled to depends on the terms of your policy and the laws in your state of residence.

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State Farm does not include rental reimbursement in its standard auto insurance policies, but it can be purchased for an additional cost. Under most circumstances, you can only add rental reimbursement coverage to your State Farm policy if you also have collision coverage or comprehensive coverage or both in place. In nearly every situation where you can add rental reimbursement coverage to your State Farm auto insurance policy, you will also have a travel expense reimbursement feature included. Again, depending on the state where you live and drive and depending on the specific coverage details involving your policy, this travel portion will compensate you for limited travel and even lodging expenses if you are a substantial distance from your home traveling in your covered car and you experience a covered incident requiring lengthy or extended repairs.

You can get this extra coverage with little added cost

Although the auto accident rental car reimbursement from State Farm is an additional cost above and beyond your state-required coverage, you may be able to save on the policy. State Farm regularly offers customers loyalty and multi-line discounts, so you won't have to pay the full price when you add an option like this.

If you do need to rent a car and you have opted for the additional car accident rental car reimbursement coverage, you have two options when using your coverage:

  • Rent from one of the rental companies that State Farm has approved and have it bill State Farm directly
  • Rent from the rental company of your choosing, pay up front for the rental, then submit a claim and have State Farm reimburse you for the approved amount

While rates and limits will vary from state to state, a brief survey of states across the country where State Farm auto insurance rental reimbursment coverage is available shows that you can get coverage options that willl pay from between $25-30 daily for a rental car with total reimbursment limits ranging from $750 to $1,200. These limits are "per accident".

if you need a good neighbor and you're far from home, state farm auto insurance rental reimbursement coverage can helpA similar survey of states shows that adding this coverage option can be very affordable. To add rental reimbursemnet to your State Far auto insurance coverage can add as little as $9 more to your premium costs over the terms of your policy, with the average added cost running anywhere from $18-28. When you consider that you can easily spend upwards of $85-100 for daily rental (especially for a traveling family) this added option seems like a bargain.

State Farm also offers some executive and expanded coverage programs whereby you can bundle a number of insurance products and expand coverage limits for rental car reimbursement, travel and lodging expenses, even expanded life insurance and medical payments coverage. If you are interested, ask your State Farm representative for more information.

Do you need this coverage?

Auto accident rental car reimbursement may not be right for everyone, but in certain situations, it is well worth the cost. You may want to consider adding this coverage if:

  • You only have one vehicle in your household
  • There is more than one person in your household that uses the car that was damaged
  • You rely on your primary vehicle to get to and from work
  • You aren't able to afford a rental car without insurance coverage

if you travel often or if you're a one car family, seriously consider state farm auto insurance rental reimbursement coverageIf you have rental car benefits or discounts from some other program you are participating in (such as membership in an auto club), you may not need to add car rental or travel expense coverage options to your State Farm car insurance coverage.

You can see all the auto insurance coverage options from State Farm here

 

State Farm offers many different types of insurance policies to meet nearly every customer’s needs, including State Farm auto insurance rental reimbursement coverage. Since coverage limits and allowances vary from state to state, it will be important to speak with a local agent who understands the rules and laws that apply to you. Reply! can help by putting you in contact with local insurance professionals who will work with you to get the best results.

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About the Author

Jeffrey Davidson is the Auto Insurance content editor at Reply! with more than 25 years of market research, PR, insurance sales and consulting experience. To share his insurance ideas, find him on Google+.